Watch And Wait

 

What
a week we had….I really am looking forward to the weekend.
Analysts
think that the bottom is near, but don’t tell me that I need
confirmation from the market itself before I get to
o
happy!  Gross Domestic Product
by
.7%
,
which was less than expected, but GDP still did increase. And the
indicator which Alan Greenspan looks at
Personal
Consumption Expenditures
rose
1.7%
,
which
was good.

Something quite interesting
happened today in the market
:
first Cisco Systems (CSCO)
announced they would be acquiring Allegro Systems. Analyst views on
this
are
quite intriguing. It appears that CSCO would not ever consider a
purchase of another company unless the market environment
wereconducive
to such an acquisition.

Secondly,
a number of semiconductor companies had very optimistic comments on
the markets, stating we are nearing a bottom. We shall see. 

After
earning season
,
we should see if the markets can regain some momentum and move up. So
lets

keep
a watchful eye over the next couple of weeks on market performance and
breadth.

Not much again to look at on
the intermediate
term
front, but still some stuff came up.

Cryolife (CRY)
is forming a high level symmetrical triangle. Growth rate for the
company is low at 12% for momentum traders, but still showing some
positive fundamentals.

Downey Financial (DSL)
is moving up the right side of its multi-week cup. The financial stock
is showing positive earnings and sales growth.

Rehabcare Group (RHB)
is pulling back and forming a second handle after breaking out of its
four-month
cup.

Education Management (EDMC)
is pulling back after breaking out of a cup with handle base. The
stock closed above its pivot point today.

Looking at ETFs
gaining in the trading session, the Internet Infrastructure H
OLDRs
(IIH)
gained 7.0%.

The WEBS-Sweden fund (EWD)
shot higher 5.2% and the WEBS-Malaysia fund (EWM)
closed up 4.3%.

In the red were the
WEBS-Belgium fund (EWK)
as it slid 2.0%.

Basic materials did not fare
well as the Ishares DJ US Basic Material Sector (IYM)
shed 1.1% . 

Losing fractionally was the
Ishares DJ US Utilities Sector (IDU)
which lost 0.9%.

 

Remember that all securities
are risky. In any trade, you should always reduce your risk by
adjusting position size and placing open protective stops
where
you will sell your long or cover your short in case the market turns
against you. For an introduction to combining price stops with
position sizing, see Loren’s lesson, Risky
Business.

Have a great weekend.

Greg